RMB Capital Account Liberalization Deepened

Xie Yaxuan, chief macroeconomic analyst, believes that this is in line with the idea of "storing money in the people" advocated by regulators in recent years, easing the pressure on foreign exchange reserves and promoting the balance of payments.

On the other hand, it is also necessary to give individual investors more investment channels to meet the residents' willingness to diversify investment and promote the rapid growth of their personal wealth.

By the end of 6 2014, China's foreign exchange reserves were close to US $4 trillion.

China's foreign exchange reserves account for more than 60% of China's foreign assets, while foreign exchange reserves are actually not used.

China's top executives have repeatedly stated that foreign exchange reserves are both wealth, but the scale is also a burden. It encourages financial institutions, enterprises and individuals to become the holders of foreign exchange assets.

But constrained by policy constraints and narrow investment channels, China's current policy of individual overseas investment is "partially open and limited outflow".

At present, the legal and regulatory personal investment channels include: first, domestic individuals establish Special Purpose Company abroad; two, invest in overseas securities through QDII; three, domestic individuals participate in stock holding plans and share option plans through overseas companies or overseas agencies, and four are pferred through personal property to invest abroad.

The opening up of China's capital account is a gradual process. In the past few years, the larger progress is the opening of enterprises and financial institutions, and the last is the opening of individuals.

Further liberalization of personal investment abroad is an important achievement and embodiment of capital account liberalization.

Wen Bin, principal investigator of Minsheng Bank (600016, stock bar), told reporters that the prime minister's statement in the government work report foreshadowed the deepening of RMB capital account liberalization.

It is worth noting that in the government work report, China will steadily realize RMB capital account convertibility.

Ding Zhijie, Dean of Finance and economics of the University of foreign trade and economics, [micro-blog] told the newspaper reporter that the "steady" expression is different from the "convertibility of Renminbi capital account" which was proposed in the third Plenary Session of the 18th CPC Central Committee.

He believes that this is more targeted at the current complex financial situation at home and abroad, the more flexible and flexible direction of capital account liberalization is unchanged.

Looking back over the past few years, with the steady progress of RMB internationalization in China, there has been some substantial progress in the gradual relaxation of personal investment abroad.

In May 16, 2013, the State Council put forward the idea of "establishing a system for overseas investment of individual investors" and issued it in May 8, 2014.

Some opinions on further promoting the healthy development of the capital market "(new country nine articles") stipulate that after the "steady opening of overseas individuals' direct investment in domestic capital markets and the orderly promotion of domestic individuals' direct investment in overseas capital markets", the NDRC first disclosed the formulation of regulations on overseas investment by individuals.

In August 2014, the head of the NDRC said that the regulations on overseas investment and its implementation rules are being developed and promulgated, allowing individual investors to invest abroad.

This is seen as a weathervane for personal direct investment abroad.

In November 14, 2014, the people's Bank of China [micro-blog] issued the "people's Bank of China".

Notice of relevant domestic institutional investors on overseas securities investment. "

This means that the long-awaited rqdii mechanism has finally been officially launched, and qualified institutional investors within the territory can use Renminbi to invest in the overseas RMB capital market, and China's RMB internationalization process will further accelerate.

This will widen the two-way flow of RMB capital and facilitate the overseas securities investment activities of RMB qualified domestic institutional investors.

Since the two quarter of last year, China has entered the new normal of "current-account surplus and capital account deficit".

Ding Zhijie said that excessive capital inflow in the past has become the crux of many problems in China's economy.

Now, accelerating foreign investment in foreign exchange capital can make capital outflow effectively, which helps to alleviate the problem of excessive foreign exchange in the past. It also improves the space for the reduction of the quota and is conducive to the perfection of China's monetary control system.